Dealers with good reputation are preferred in India : JD Power

According to the J.D. Power 2014 India Sales Satisfaction Index (SSI) Study, new‐vehicle buyers in the country are increasingly choosing dealers based on the dealers’ reputation and operational effectiveness.

The survey states that the market has seen an 11 percent jump in the number of buyers, opting for a particular dealer because of its reputation. Additionally faster delivery time, availability of the exact model and ease of negotiation are the other reasons that have shown a significant rise during the same period. Buyers those chose a dealer based on the above mentioned reasons, paid an average of 4 per cent more for their vehicle, than those who selected an aoutlet for reasons such as location or receiving the best deal.

“The Indian automotive industry has been facing significant challenges over the past two years, but dealers that are able to present their offerings to customers in a transparent manner, aided with availability of the exact model and commitment of a faster delivery time are often rewarded because customers are willing to spend more for their vehicle,” said Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore.

In terms of ranking given in the study, Japanese auto major, Toyota topped the ranking with a score of 866, performing particularly well across all factors. India's leading carmaker Maruti Suzuki India took the second spot, with a score of 860. Sharing the third spot, Honda, Hyundai and Mahindra & Mahindra scored 859 points each.

Furthermore, the study also puts light on the fact that 29 per cent of new-vehicle buyers used the Internet during the purchase. Out of which 52 percent visited manufacturers website, while 40 percent visited other auto websites.

“Automakers need to work on a strategy to continuously monitor and respond to any feedback posted on such websites, as reviews and comments posted on these websites are likely to impact perceptions consumers have of the brands during their shopping process,” he added.